Composable Tech Is Growing At An Estimated 50.4% Annually - This Fintech Is Aiming To Capture More Of That Market With Its New Composable Origination Tech
SAN FRANCISCO, CA / ACCESSWIRE / May 11, 2023 / In December of last year, Gartner forecasted that
It also gives users the flexibility to add and remove components as they go which makes it a much more flexible and sustainable solution for keeping up with the always-evolving world of tech. For financial institutions, that flexibility could translate to as much as a
That's turned this emerging tech trend into a rapidly growing market. Grand Review estimates that the global composable infrastructure market is growing at a compound annual growth rate of
Now, Blend (NYSE:BLND) is bringing that modular flexibility to the origination process for banks with the launch of its composable origination tech. The new tech is available in the company's Blend Builder Platform, which already offers composable solutions for a variety of consumer banking products like deposit accounts, credit cards, and auto loans.
Blend's Composable Origination Makes Digital Transformation Possible for A Traditionally Complex Process
The origination process can be cumbersome. It involves multiple departments within the bank that will often each have their own set of workflows and processes. While digital origination solutions exist, they don't always offer the level of customization or integration needed to coordinate all of those separate workflows and processes easily.
That's why Blend launched Blend Builder, its composable origination platform. Instead of an out-of-the-box solution, Blend Builder breaks down the origination process into a set of modular components, called Blocks. This includes blocks for things like pricing, income verification, and closing among others.
By dragging and dropping these blocks, users can build their own customer origination products with little to no coding required. For banks, that flexibility makes it easier to build a more streamlined user experience for customers but it can also help lower costs by eliminating inefficiencies and making it easier to scale by adding or removing individual components as needed rather than building a whole new system from scratch.
The offering is part of Blend's overall transition from a multi-point solution to a single-platform business model as it bets on the high growth potential of the composable tech market. In January, Blend announced that it was allocating more of its operating expenses to Blend Builder as part of a larger set of strategic initiatives to curb costs and bring in more revenue.
The platform generates revenue from a base subscription fee as well as success-based transaction fees. The company expects that the enhanced platform along with its other strategic initiatives will improve gross margins for the company as soon as the second half of this year.
Featured photo by Paul Hanaoka on Unsplash.
Contact:
Investor Relations
IR@blend.com
SOURCE: Blend Labs Inc.
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